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ARTICLE · 30 APRIL 2018

Statutory demand set aside on appeal

A High Court judgment and a statutory demand for outstanding claims for landscaping work on a development were set aside.

New ZealandLitigation, Mediation & Arbitration

Confident Trustee Limited v Garden and Trees Ltd [2017] NZCA 578

Confident Trustee Limited (CTL) entered into a contract with Garden and Trees Limited (Garden and Trees) for Garden and Trees to clear a site prior to earthworks for a residential subdivision development. CTL claimed that the work was running behind schedule so it engaged another contractor to assist, at which point Garden and Trees unilaterally left the site. This was disputed by Garden and Trees, who claimed that it was effectively dismissed by CTL.

Garden and Trees sent an invoice to CTL for work carried out and, when this went unpaid, issued a statutory demand requiring payment of the outstanding amount. Somewhat surprisingly, in the High Court Associate Judge Christiansen refused to set aside the demand, although it was clear there was a factual dispute between the parties about the circumstances in which the contract came to an end.

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